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TimeHorse
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Delivery Date: 02 Nov 2011

Re: EVSE Tax Credit? AMT is a "killer"

Sun Mar 06, 2011 12:14 pm

guywithleaf wrote:Just to confirm what another "amateur" poster noted: The EVSE tax credit is NOT available to those who fall within the AMT (alternative minimum tax), form 8911 or not. So even having to pay $1 in AMT disqualifies you from any amount of tax credit. My CPA just confirmed this when I asked why I wasn't seeing the credit on my tax credit. So those who are thinking of purchasing may want to rethink the purchase option and try the lease or some other option. Fortunately I only lost up to half of the $2451 I paid to AV; I'm exploring other options for the Leaf itself.
Your credit is the lesser of the 3:
  1. Half the value (50%) of what you spent on the EVSE
  2. $2000.00
  3. The positive difference computed by (regular taxes after most credits have been applied) - (your total taxes under AMT without any credits); if this value is $0 or negative, you get no EVSE credit.
Last edited by TimeHorse on Sun Mar 06, 2011 5:17 pm, edited 2 times in total.
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Re: EVSE Tax Credit? AMT is a "killer"

Sun Mar 06, 2011 4:16 pm

guywithleaf wrote:... I'm exploring other options for the Leaf itself.
The "Leaf itself" ($7,500 tax credit) should *not* be affected by AMT :) ... only limited to the lesser of $7,500 or your total tax liability (regular or AMT amount). At least that's my (non-tax-expert) understanding of it.
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TimeHorse
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Re: EVSE Tax Credit? AMT is a "killer"

Sun Mar 06, 2011 5:31 pm

LEAFer wrote:
guywithleaf wrote:... I'm exploring other options for the Leaf itself.
The "Leaf itself" ($7,500 tax credit) should *not* be affected by AMT :) ... only limited to the lesser of $7,500 or your total tax liability (regular or AMT amount). At least that's my (non-tax-expert) understanding of it.
The EV Credit (applied via form 8936) is part of the credits subtracted from your regular tax when you compute regular taxes after most credits have been applied. This means, you must have a difference of at least $9500 between regular tax with all credits besides the EV credit to also claim all of the EVSE credit. As I didn't buy an EV in 2010, this doesn't apply to me but it no doubt applies to many people who bought the LEAF or Chevy Volt in November or December 2010 and also installed the EVSE the same year.

Now, as for form 8936, line 11 asks for your total tax burden after AMT has been added to it. Therefore you get to claim this credit regardless of AMT. The only restriction on this credit is if this credit, plus the other AMT-agnostic credits, sum to a value greater than your overall tax burden, you can't take more credit than that overall burden (at least not due to buying an EV).

These credits are as follows:
  • Credit for taxes paid to another nation (Foreign Taxes Paid; which, BTW, is the one credit that doesn't enter into the EVSE calculation at all)
  • Credit for child and dependent care expenses. Attach Form 2441. (Form 1040, Line 48; Form 1040NR, Line 46)
  • Education credits from Form 8863, line 23. (Form 1040, Line 49)
  • Retirement savings contributions credit. Attach Form 8880. This the sum of your Traditional and Roth IRA contributions. (Form 1040, Line 50; Form 1040NR, Line 47)
  • Residential energy credits. Attach Form 5695. This includes all energy efficiency home improvement credits including additional insulation, more efficient exterior windows and better-insulating exterior doors or heat-reducing exterior roofing, as well as Photovoltaic panels, a solar thermal water heater, wind power generators or a geothermal heat pump. (Form 1040, Line 52; Form 1040NR, Line 49)
  • Qualified Plug-in Electric and Electric Vehicle Credit. This is for originally built 2- or 3-wheeled vehicles or city-cars limited to low speeds purchased in the tax year. (Form 8834)
  • Alternative Motor Vehicle Credit. This credit is for alternative motor vehicles and plug-in electric vehicle conversions; it's not for cars originally built as plug-in hybrid electric or purely electric vehicles. (Form 8910)
  • Credit for the Elderly or the Disabled. (Schedule R)
In other words, as we already knew, you can't have negative tax no matter how many credits you claim. Also, it seems the EV Tax Credit allows up to 3 vehicles in 1 year, meaning a total of up to $22,500 potential in tax credits if you could afford to buy a LEAF, Volt, what, the Focus, all in the same year? Well, if you were that rich, I suppose just throw in the Tesla Roadster as the third car!
RIP CO2 Fre, 27 months, 42,282 mi & 11 bars.
unAmerican Job & Nissan's Rapid Depreciation cost $20,000!
5 hours on the road daily w/o Charge at Work on 100%.

Long Live CO2 Fre, Maxed 2013 SL, 20,000 mi/yr lease.
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